AVANIR Pharmaceuticals (FRA:AV2B) Beneish M-Score : -1.83 (As of Apr. 29, 2024)

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What is AVANIR Pharmaceuticals Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for AVANIR Pharmaceuticals's Beneish M-Score or its related term are showing as below:

FRA:AV2B' s Beneish M-Score Range Over the Past 10 Years
Min: -7.77 Med: -2.58 Max: 35.77
Current: -1.83

During the past 13 years, the highest Beneish M-Score of AVANIR Pharmaceuticals was 35.77. The lowest was -7.77. And the median was -2.58.

AVANIR Pharmaceuticals Beneish M-Score Historical Data

The historical data trend for AVANIR Pharmaceuticals's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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AVANIR Pharmaceuticals Beneish M-Score Chart

AVANIR Pharmaceuticals Annual Data

Trend

Sep05

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Beneish M-Score

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-3.43

-0.02

-0.79

-2.53

-1.83

AVANIR Pharmaceuticals Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Beneish M-Score	Get a 7-Day Free Trial															-2.53	-3.36	-1.88	-1.82	-1.83

Competitive Comparison of AVANIR Pharmaceuticals's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, AVANIR Pharmaceuticals's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

AVANIR Pharmaceuticals's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, AVANIR Pharmaceuticals's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where AVANIR Pharmaceuticals's Beneish M-Score falls into.

AVANIR Pharmaceuticals Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of AVANIR Pharmaceuticals for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2662

0.528 * 0.9738

0.404 * 0.2378

0.892 * 1.4935

0.115 * 1.2698

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8012

4.679 * -0.004231

0.327 * 0.1415

-1.79

This Year (Sep14) TTM:

Last Year (Sep13) TTM:

Total Receivables was €17.72 Mil.
Revenue was 25.379 + 21.072 + 19.483 + 19.525 = €85.46 Mil.
Gross Profit was 26.023 + 19.829 + 18.492 + 18.581 = €82.93 Mil.
Total Current Assets was €233.43 Mil.
Total Assets was €238.22 Mil.
Property, Plant and Equipment(Net PPE) was €2.82 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.05 Mil.
Selling, General, & Admin. Expense(SGA) was €84.64 Mil.
Total Current Liabilities was €24.90 Mil.
Long-Term Debt & Capital Lease Obligation was €0.00 Mil.
Net Income was -10.952 + -9.346 + -9.166 + -7.991 = €-37.46 Mil.
Non Operating Income was -0.611 + 0 + -0.007 + 0 = €-0.62 Mil.
Cash Flow from Operations was -5.478 + -11.837 + -11.374 + -7.14 = €-35.83 Mil.

Total Receivables was €9.37 Mil.
Revenue was 16.196 + 14.977 + 13.459 + 12.588 = €57.22 Mil.
Gross Profit was 15.282 + 14.16 + 12.686 + 11.943 = €54.07 Mil.
Total Current Assets was €53.74 Mil.
Total Assets was €56.91 Mil.
Property, Plant and Equipment(Net PPE) was €1.19 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.63 Mil.
Selling, General, & Admin. Expense(SGA) was €70.73 Mil.
Total Current Liabilities was €26.03 Mil.
Long-Term Debt & Capital Lease Obligation was €16.02 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(17.717 / 85.459)	/	(9.369 / 57.22)
	=	0.207316	/	0.163736
	=	1.2662

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(54.071 / 57.22)	/	(82.925 / 85.459)
	=	0.944967	/	0.970348
	=	0.9738

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (233.434 + 2.818) / 238.219)	/	(1 - (53.739 + 1.192) / 56.907)
	=	0.008257	/	0.034723
	=	0.2378

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	85.459	/	57.22
	=	1.4935

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0.627 / (0.627 + 1.192))	/	(1.05 / (1.05 + 2.818))
	=	0.344695	/	0.271458
	=	1.2698

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(84.636 / 85.459)	/	(70.73 / 57.22)
	=	0.99037	/	1.236106
	=	0.8012

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 24.904) / 238.219)	/	((16.024 + 26.025) / 56.907)
	=	0.104542	/	0.738907
	=	0.1415

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-37.455 - -0.618	-	-35.829)	/	238.219
	=	-0.004231

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

AVANIR Pharmaceuticals has a M-score of -1.79 suggests that the company is unlikely to be a manipulator.

AVANIR Pharmaceuticals Beneish M-Score Related Terms

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AVANIR Pharmaceuticals (FRA:AV2B) Business Description

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Address

Website

http://www.avanir.com

Avanir Pharmaceuticals was incorporated in California in August 1988 and was reincorporated in Delaware in March 2009. The Company is a biopharmaceutical company focused on acquiring, developing and commercializing novel therapeutic products for the treatment of central nervous system disorders. The Company commenced promotion of NUEDEXTA in the United States in February 2011. The Company is also studying AVP-923 for use in different types of neuropathic pain. NUEDEXTA is the first and only FDA-approved treatment for pseudobulbar affect. NUEDEXTA is an combination of two components: dextromethorphan hydrobromide, the ingredient that is harmacologically active in the central nervous system, and quinidine sulfate, a metabolic inhibitor enabling dextromethorphan to reach therapeutic plasma concentrations. The Company currently markets NUEDEXTA to approximately 10,000 physicians and other healthcare providers who specialize in psychiatry, neurology or geriatric medicine and practice in outpatient or long-term care settings. NUEDEXTA may face competition from several products: Antidepressants, including Prozac, Celexa, Zoloft, Paxil, Elavil and Pamelor and others; Atypical antipsychotic agents, including Zyprexa, Risperdal, Seroquel, Abilify, Geodon and others; and Miscellaneous agents, including Symmetrel, Lithium and others. The Company is subject to regulation under the Occupational Safety and Health Act, the Environmental Protection Act, the Toxic Substance Control Act, the Export Control Act and other present and future laws of general application.

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